17B-1-1310.  Notice to lieutenant governor — Recording requirements — Distribution of remaining assets.

(1)  The administrative body, shall file with the lieutenant governor a copy of a notice of an impending boundary action, as defined in Section 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3):

Terms Used In Utah Code 17B-1-1310

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
  • Property: includes both real and personal property. See Utah Code 68-3-12.5
  • Special district: means a limited purpose local government entity, as described in Section 17B-1-103, that operates under, is subject to, and has the powers described in:
(a) this chapter; or
(b) 
(i) this chapter; and
(ii) 
(A) 1;
(B) 2;
(C) 3;
(D) 4;
(E) 5;
(F) 6;
(G) 7;
(H) 8;
(I) 9;
(J) 10; or
(K) 11. See Utah Code 17B-1-102
(a)  within 30 days after the day on which the administrative body adopts a resolution approving the dissolution of an inactive special district; or

(b)  within 30 days after the day on which a majority of the voters within an active special district approve the dissolution of the special district in an election described in Subsection 17B-1-1309(2).

(2)  Upon the lieutenant governor’s issuance of a certificate of dissolution under Section 67-1a-6.5, the administrative body shall:

(a)  if the special district was located within the boundary of a single county, submit to the recorder of that county:

(i)  the original:

(A)  notice of an impending boundary action; and

(B)  certificate of dissolution; and

(ii)  a certified copy of the resolution that the administrative body adopts under Subsection 17B-1-1308(1); or

(b)  if the special district was located within the boundaries of more than a single county:

(i)  submit to the recorder of one of those counties:

(A)  the original notice of an impending boundary action and certificate of dissolution; and

(B)  if applicable, a certified copy of the resolution that the administrative body adopts under Subsection 17B-1-1308(1); and

(ii)  submit to the recorder of each other county:

(A)  a certified copy of the notice of an impending boundary action and certificate of dissolution; and

(B)  if applicable, a certified copy of the resolution that the administrative body adopts under Subsection 17B-1-1308(1).

(3)  Upon the lieutenant governor’s issuance of the certificate of dissolution under Section 67-1a-6.5, the special district is dissolved.

(4) 

(a)  After the dissolution of a special district under this part, the administrative body shall use any assets of the special district remaining after paying all debts and other obligations of the special district to pay costs associated with the dissolution process.

(b)  If the administrative body is not the board of trustees of the dissolved special district, the administrative body shall pay any costs of the dissolution process remaining after exhausting the remaining assets of the special district as described in Subsection (4)(a).

(c)  If the administrative body is the board of trustees of the dissolved special district, each entity that has committed to provide a service that the dissolved special district previously provided, as described in Subsection 17B-1-1308(2)(b), shall pay, in the same proportion that the services the entity commits to provide bear to all of the services the special district provided, any costs of the dissolution process remaining after exhausting the remaining assets of the dissolved special district described in Subsection (4)(a).

(5) 

(a)  The administrative body shall distribute any assets of the special district that remain after the payment of debts, obligations, and costs under Subsection (4) in the following order of priority:

(i)  if there is a readily identifiable connection between the remaining assets and a financial burden borne by the real property owners in the dissolved special district, proportionately to those real property owners;

(ii)  if there is a readily identifiable connection between the remaining assets and a financial burden borne by the recipients of a service that the dissolved special district provided, proportionately to those recipients; and

(iii)  subject to Subsection (6), to each entity that has committed to provide a service that the dissolved special district previously provided, as described in Subsection 17B-1-1309(1)(b)(ii), in the same proportion that the services the entity commits to provide bear to all of the services the special district provided.

(6)  An entity that receives cash reserves of the dissolved special district under Subsection (5)(a)(iii) may not use the cash reserves:

(a)  in any way other than for the purpose the special district originally intended; or

(b)  in any area other than within the area that the dissolved special district previously served.

Amended by Chapter 15, 2023 General Session